On Monday, the Pentagon’s Chief Digital and AI Office (CDAO) awarded contracts totaling up to $800 million to four leading AI labs—Google, OpenAI, Anthropic, and Musk’s xAI. These contracts, each with a $200 million cap, focus on developing “agentic” AI workflows to enhance combat planning and administrative tasks within the Department of Defense (DoD). CDAO’s initiative aims to streamline the adoption of AI, enhancing support for warfighters and maintaining a strategic edge over adversaries. The two-year prototype deals will integrate AI capabilities within DoD platforms like Advana and Maven Smart System. Google will leverage its Tensor Processing Units, while OpenAI offers a secure platform, “OpenAI for Government.” The contracts are part of a broader push for AI funding in the upcoming FY-26 budget, igniting discussions on the autonomy of military AI systems. These developments may also influence civilian technologies, echoing historical military-to-consumer innovations.
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